Reportedly, 200 contracted factories across Vietnam that make sportswear for NIKE, Inc. (NKE) have resumed operations after months of COVID-19 suspension, racing back to get its key manufacturing sector back on track. In mid-July, nearly 80% of Nike’s footwear makers and half of its apparel providers in Vietnam were forced to halt production after authorities had imposed restrictions on movement to stop a major outbreak from spreading. Almost half of the American sports giant’s footwear is made in Vietnam.
The government-induced shutdown led to pressure from foreign business groups, which warned they could shift operations abroad. Even though the curbs were lifted but the country is now facing labor shortages. Nike to continue to expand investment and production in Vietnam, informed the government followed a meeting between Prime Minister Pham Minh Chinh and Nike’s Chief Sustainability Officer, Noel Kinder, on the sidelines of the COP 26 summit.
NIKE, Inc. (NKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon-based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.